Question # 1

Number of firms under monopoly is

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One

Two

Three

Four

If supply rises more proportionately than that of demand, then

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Equilibrium price increases

Equilibrium price decreases

Equilibrium price does not change

Equilibrium quantity decreases

When supply curve shifts leftwards or up, it is called

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Rise of supply

Fall of supply

Extension of supply

Contraction of supply

One of the following is considered as capital:

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Land

Labour

Raw material

Both (a) and (b)

Deductive method of deriving economic laws

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We move from general conditions to particular conditions

We move from particular conditions to general conditions

Stated in general way

Different incidents are kept in view

Under monopoly average revenue curve remains ______ the marginal revenue curve

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Below

Above

Parallel to

None of three

Who said that economics is normative science ?

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Keynes

Robbins

Marshall

Rocher

Which factor is oldest and basic factor of production

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Land

Labour

Capital

Organization

Which of the following is not invisible trade

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Expenditure on education in other country

Expenditure on imported machinery

Expenditure of passengers traveling by air

Expenditure of goods carried by a ship

Under perfect competition in the long run a firm

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Always earns abnormal profit

Always earns normal profit

Usually earns abnormal profit

Usually faces loss

When supply changes due to other factors besides price, it is called

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Rise of supply

Fall of supply

Rise and fall of supply

Extension and contraction of supply

One of the following is not the monetary measure to control inflation

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Increase in bank rate

Open market operation

Increase in the ratio of reserve capital of the banks

Increase in taxes

Tendency of demand curve of a factor of production is

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Positive

Negative

Zero

Horizontal

In perfect competition number of firms is

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One

Two

A few

Large

One of the following is not the characteristic of money

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General acceptability

Durability

Non homogeneity

Convertibility

Barter economy means the economy in which no good is generally accepted and goods are exchanged with goods. This definition is stated by the

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Prof Marshall

Stanlay Fisher

Culberon

Walker

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Principles of Economics Icom Part 1 English Medium Online Test MCQs With Answers

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